CWCB Repayment Contract ALP

E,
Attachment 2
Method to EsOuinte the Inflated Rchnbursenient CAP
PURPOSE:
To obiluic a wetltod for estimating the potential overall projv;.t cost and repayrneaut in
order to facilifaic adiniiustralicin'of'escrow au.ounts and payments under the up -front
cost - share agrcoments. Actual repayment will be based on the final Cost allocation, after
application of applicaitic tests.
SLC'JJON 207 LANGUACM. AS_AMlNDPD:
Suction 207 limits the non - tribal repayment obligation to $43 million for the, $500 million
proje t (10/03 prices). The language, as amended, results in:
- No repaywcut of the $163 tniillion of cost iricrc iscs
- No repayment of the effects of inflation on tLe $163 million of cost lnerc4lses
1�n1�lies repaynnr -at on the effects of inflp ion on the $337 willion ($500
million - $163 million), which implies some inflation of the reiuibursernexit
cqp.
ML ='1 4OD:
A simple method of calculating rcimpuent of the corrent incle.xed project ($522 million
G 10/05 prices) is:
;543 million (Oril!ipal Reixubursurneol_ (.'.a 13111atcd Reimbtuscu►cnt C��_(qj1 U /)S
$500 trillion (CCE a, 10/03) $522 million @10105
Inflated RcImburscinent Cup n 10105 prices — X44, 892,000